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Narelle Blackadder

How do I performance manage in small business?


Two businesswomen in a meeting
Inclusive Performance Management

Performance management is the process of creating a work environment or system that enables and encourages employees to perform at their best to achieve the goals and objectives of the organisation.

The best results are achieved by being inclusive and non-threatening, start by thinking about the best place to start a discussion.




Here's a step-by-step guide on how to effectively performance manage your employees:


1. **Set Clear Expectations**:

Clearly define job roles, responsibilities, and performance expectations. Make sure each employee understands their job description and what is expected of them.


2. **Establish Goals and Objectives**:

Set specific, measurable, achievable, relevant, and time-bound (SMART) goals for each employee. These goals should align with the overall goals of the organisation.


3. **Regular Feedback**:

Provide regular feedback to employees. Don't wait for annual reviews; offer constructive feedback and praise as appropriate throughout the year.


4. **Use Key Performance Indicators (KPIs)**:

Define KPIs that are relevant to the employee's role and the organisation's goals. These metrics help both employees and managers track progress and success.


5. **Document Performance**:

Maintain accurate records of an employee's performance, including both strengths and areas for improvement. Document achievements and challenges.


6. **Identify Strengths and Weaknesses**:

Recognise and acknowledge an employee's strengths and offer support and resources to improve areas where they may be struggling.


7. **Continuous Development**:

Encourage ongoing learning and development. Provide opportunities for training, workshops, and skill-building that align with employees' career and performance goals.


8. **Constructive Coaching and Mentoring**:

Offer coaching and mentoring to help employees improve their skills and capabilities. Provide guidance on how they can meet their goals and address any shortcomings.


9. **Regular Performance Reviews**:

Conduct periodic performance reviews (e.g., quarterly, semi-annually, or annually) where you discuss an employee's performance, strengths, weaknesses, and areas for improvement.


10. **Recognition and Rewards**:

Recognise and reward exceptional performance. This can include bonuses, promotions, or non-monetary recognition like "Employee of the Month" awards.


11. **Performance Improvement Plans (PIPs)**:

If an employee consistently falls short of expectations, consider implementing a Performance Improvement Plan (PIP) that outlines specific steps, timelines, and support to help them improve.


12. **Address Poor Performance Promptly**:

If an employee's performance declines significantly, address the issue immediately. Clearly communicate the problem, discuss potential solutions, and set a timeline for improvement.


13. **Constructive Feedback**:

When providing feedback, focus on specific behaviors and outcomes rather than making it personal. Use a constructive and positive tone to encourage improvement.


14. **Offer Support**:

Ensure that employees have the resources, tools, and support they need to perform their job effectively. This includes training, equipment, and a conducive work environment.


15. **Promote Two-Way Communication**:

Encourage employees to share their thoughts, concerns, and ideas about their role and the organization. An open and honest dialogue fosters a positive work environment.


16. **Recognise Personal Growth**:

Acknowledge and support an employee's personal growth and career development, aligning their aspirations with the organization's long-term goals.


17. **Documentation and Follow-Up**:

Keep records of all performance-related discussions, feedback, and progress. Follow up on commitments made during performance discussions.


18. **Consistency**:

Apply performance management consistently across the organisation to ensure fairness and equality.


Remember that effective performance management is an ongoing process and should be a collaborative effort between managers and employees. By setting clear expectations, offering support, and providing regular feedback, you can help your employees reach their full potential and contribute to the success of your organisation.

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